

NOTE 2—BUSINESS DEVELOPMENTS

On December 1, 2015, we acquired the Healthcare Financial Services business of General Electric Capital Corporation (“GE Healthcare acquisition”), which provides financing to companies in various healthcare sectors, including hospitals, senior housing, medical offices, pharmaceuticals, medical devices and healthcare technology. The GE Healthcare acquisition expands our healthcare lending business within our Commercial Banking segment. We paid $8.9 billion net of cash acquired, with a customary post-closing adjustment expected in 2016. The transaction was funded through liquidity resources available to us at that time.

The GE Healthcare acquisition was accounted for under the acquisition method of accounting, which requires, among other things, that we allocate the purchase price to the assets acquired and liabilities assumed based on our best estimates of fair value as of the acquisition date. As of the acquisition date, we recorded $9.2 billion in assets, including $177 million of cash, $8.3 billion of loans, $136 million of intangible assets and $500 million of goodwill. We expect to finalize the accounting for assets acquired and liabilities assumed in the GE Healthcare acquisition by June 30, 2016. Results for the acquired GE healthcare business are included within our Commercial Banking segment from December 1, 2015 forward. See “Note 5—Loans” for additional information about the loans acquired and “Note 8—Goodwill and Intangible Assets” for additional information about intangibles acquired and goodwill recognized resulting from the GE Healthcare acquisition.

On November 1, 2013, we acquired Beech Street Capital, a privately-held, national originator and servicer of Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Federal Housing Administration (“FHA”) multifamily commercial real estate loans. The acquisition expanded and enhanced our existing multifamily capabilities and product offerings. At closing, we acquired a commercial mortgage servicing portfolio of approximately $10 billion.

On September 6, 2013, we completed the sale of the Best Buy private label and co-branded credit card portfolio to Citibank, N.A. (“Portfolio Sale”). Pursuant to the agreement with Citibank, N.A., we received $6.4 billion for the net portfolio assets.